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    Myra242's Avatar
    Myra242 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Jul 22, 2009, 03:36 PM
    Overhead Rate
    Is there a formula to determine overhead rate based on direct labor hours?
    rehmanvohra's Avatar
    rehmanvohra Posts: 739, Reputation: 27
    Senior Member
    		  
    #2

    Jul 22, 2009, 11:10 PM

    Of course there is. All you must do is mention what formula you have and we will try to help in correcting any error.
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
    Uber Member
    		  
    #3

    Jul 23, 2009, 12:37 AM

    Overhead rate is estimated annual overhead costs divided by estimated annual acitivity base. Direct labor hours is being used as your activity base.

    This equation should be in your text.
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